Answer Happy

The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income Income Statement Selected Balance Sheet Accounts Ending Balances Accounts Receivable Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable Cash Flows from Operating Activities: Cash Receipts from Customers Cash Payments to Suppliers Cash Payments for Salaries and Wages Cash Payments for Utilities Cash Payments for Rent $ 585 848 445 Cash Payments for Insurance Cash Payments for Interest Net Cash Provided by Operating Activities 35 30 78 30 $ 43,600 18,500 1,500 8,500 4,000 1,658 3333333 1,558 1,158 $ 6,758 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be Indicated with a minus sign.) Answer is complete but not entirely correct. DIRECT PRODUCTS COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31 Beginning Balances $ 630 695 510 $ 43,645 (18,400) x (8,475)✔ (1,140) (4,010) (1,642) (1,550) ✔$ 8,428 25 3.8 45 20